Macroeconomic Forecast North Korea

May 2006 | Macroeconomic Forecasts

North Korea's economy remains in a vulnerable state. Although the Bank of Korea, South Korea's central bank, estimates that the North's economy has grown for six consecutive years, with modest economic reforms encouraging some private enterprise, recent trade data reveals North Korea's continuing dependence on external support. While exports fell in 2005, due largely to a drop in overseas shipments of fisheries goods to Japan, imports are rising, reflecting increased domestic demand for energy-related natural resources and food. Until a solution to the nuclear problem is found, further opening to the world economy is unlikely, and the trade deficit is forecast to widen further.

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